BPCL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 4.1

⛽ Long-Term Investment Outlook

Bharat Petroleum Corporation Ltd (BPCL) is a solid long-term candidate, especially for investors seeking exposure to the energy sector with a mix of dividends and capital appreciation.

🔍 Valuation & Growth Metrics

P/E of 10.7 vs Industry PE of 21.6 → undervalued relative to peers.

PEG Ratio of 1.32 → reasonable valuation for expected growth.

Price-to-Book ~1.78x → fair for a PSU with strong asset base.

💰 Profitability & Financial Strength

ROCE (16.2%) and ROE (17.3%) → healthy capital efficiency.

EPS of ₹30.7 → strong earnings base.

Debt-to-Equity of 0.75 → moderate leverage, manageable.

Dividend Yield of 2.99% → attractive for income-focused investors.

📉 Technical Indicators

RSI at 48.0 → neutral zone, no strong momentum.

MACD positive → bullish crossover, potential upside.

Trading above 50-DMA and 200-DMA → long-term uptrend intact.

📈 Institutional Sentiment

FII holdings up (+0.87%) → foreign investor confidence.

DII holdings slightly down (-0.05%) → neutral domestic sentiment.

🎯 Ideal Entry Price Zone

Entry Zone Rationale

₹310–₹325 Near 50-DMA and technical support zone

< ₹300 Strong buy zone if RSI dips below 40

Entering below ₹335 offers a good margin of safety with upside potential.

🧭 Exit Strategy / Holding Period

If you already hold BPCL

Holding Period: Minimum 5–7 years, given its strategic role and dividend consistency.

Exit Strategy

Partial exit if price crosses ₹375–₹400 without EPS growth.

Full exit if ROE drops below 12% or PEG rises above 2.5.

Hold if PEG improves to <1 and quarterly profits stabilize.

Would you like a comparison with HPCL or Indian Oil to see how BPCL stacks up among oil marketing companies? 🔍

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